Google to Partner with MediaTek on AI Chip

Tech giant Google is reportedly preparing to collaborate with Taiwan’s MediaTek to develop its next-generation artificial intelligence (AI) chip, according to The Information.

The move is part of Google’s broader strategy to enhance its AI hardware capabilities while reducing reliance on current manufacturing partners.

Currently, Google works with Broadcom to design and manufacture its custom Tensor Processing Units (TPUs), which power AI-driven applications and cloud services. However, the new partnership with MediaTek, a leading semiconductor firm known for its work in mobile chipsets, is expected to bring cost efficiencies and closer ties with Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker.

The decision comes as Google aims to expand its AI infrastructure and develop in-house alternatives to Nvidia’s GPUs, which dominate the AI hardware market. In 2023 alone, Google reportedly spent between $6 billion and $9 billion on TPUs to support its growing AI workloads.

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Despite the shift, Google plans to maintain its relationship with Broadcom, though the potential diversification signals an effort to reduce dependence on a single supplier. Following the news, Broadcom’s stock experienced a decline, reflecting investor concerns about a possible reduction in Google’s orders.

Google’s next-generation AI chip, expected to be ready next year, could play a crucial role in strengthening its AI research and cloud offerings. With competition in the AI chip market intensifying, the partnership with MediaTek could give Google a competitive edge by improving production efficiency and reducing costs.

As AI technologies continue to evolve, Google’s strategic collaboration with MediaTek highlights the growing importance of custom-designed chips tailored for machine learning and data processing.